The saudi Nadec repurchased by a joint venture of Danone and Al Safi

© Reuters. The saudi Nadec repurchased by a joint venture of Danone and Al Safi

DUBAI (Reuters) – The company National Agricultural Development Company (Nadec) saudi Arabia announced on Sunday it has concluded an agreement for the acquisition by Al Safi Danone (PA:DANO) Company (ASD), a joint venture of dairy products and fruit juice between the saudi Al Safi Group and the food industry giant Danone.

The amount of the transaction has not been indicated.

According to the agreement, Nadec will redeem all of the shares in ATH. In exchange, the shareholders of Al Safi will hold 38.8% of Nadec.

This merger is an example of consolidation operation in the private sector that the government wants to see foster the diversification of the economy of saudi arabia in order to be less dependent in the future on oil revenues.

The market capitalization of Nadec is 3.2 billion riyals (€690 million), without comparison with Almarai, the first dairy group, a saudi arabian, whose market capitalisation amounted to 54.4 billion rials.

Nadec is owned 20% by the public investment Funds of saudi Arabia, the rest of the capital being quoted on the stock Exchange.

Nadec has said that this operation would help to expand its portfolio and its influence beyond saudi Arabia, the united arab Emirates, Kuwait, Bahrain, Jordan and Lebanon, and to enter new markets such as Iraq and Oman.

(Tom Arnold, Juliette Rouillon for the French service) OLFRBUS Reuters France Online Report Business News 20180325T144357+0000